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Market rate>coupon rate {Ans: bonds will sell at a discount}TAT of three indicates that for {Ans: every $1 of assets, the firm is generating $3 in sales.}x. stock expected to pay a dividend of $5 per yr in perpetuity. if required rate of return is 10%, what is the max that should be paid for stock. {Ans: 5/.10=50}Ratio Debt Ratio {Ans: measures the proportion of the firm's assets financed with deb}Gordon Growth Model {Ans: = (Expected Dividend at end of year)/(Required Rate of Return - Dividend Growth Rate)}risk idiosyncratic {Ans: diversifiable risk to assets}